Re-exposing Leasing Proposals, IASB and FASB Push
The International Accounting Standards Board (IASB) and the US-based Financial Accounting Standards Board (FASB) have bared their intention to re-expose their revised proposals for a common leasing standard.
The move is expected to provide interested parties with an opportunity to comment on revisions the boards have undertaken since the August 2010 publication of an exposure draft on leasing.
It came after the IASB and FASB recently moved to amend the presentation of items of other comprehensive income (OCI) in financial statements in line with International Financial Reporting Standards (IFRSs) and those prepared in accordance with US generally accepted accounting principles (GAAP).
On the other hand, the IASB and FASB said in a joint statement: “Even though the boards have not completed all of their deliberations, the decisions taken to date were sufficiently different from those published in the exposure draft to warrant re-exposure of the revised proposals.”
The boards intend to complete their deliberations, including consideration of the comment period, in the third quarter of 2011, aiming to publish a revised exposure draft shortly after.
Hans Hoogervorst, Chairman of the IASB, commented on the decision: “Although we have yet to conclude our deliberations on this project, the direction of travel indicates that there are aspects of our revised proposals that would benefit from additional input from interested parties.”
Leslie Seidman, Chairman of the FASB, added: “During our discussions of the extensive comments we received on the exposure draft, the boards have reaffirmed the major change to lease accounting, which is to report lease obligations and the related right-to-use on the balance sheet.”
However, the boards decided to make many other changes to address the comments made by stakeholders.
“The boards decided that, while we still have other matters to discuss, stakeholders would appreciate the opportunity to comment on the revised package of conclusions.”